“People Die In Hotels”: 50 Sobering Secrets About Businesses, Shared By Ex-Workers

If you've ever held down a job, you might be familiar with what's known as a Non-Disclosure Agreement (NDA). They're also sometimes called confidentiality agreements (CAs), confidential disclosure agreements (CDAs), and proprietary information agreements (PIAs).

Either way, they're legally binding contracts that prevent someone from sharing certain types of information. Often, the agreement deals with intellectual property, client data, trade secrets, internal practices, compensation details, or HR complaints.

Non-disclosure agreements, or NDAs, are like the corporate version of “what happens here, stays here." Resume Genius' career expert Eva Chan tells Bored Panda during our interview. "They set clear boundaries for employees about what can and can’t be shared outside the company," Chan says.

Chan says an employee can choose not to sign an NDA, but the company can also choose not to hire them.

"In many jobs, especially those with access to confidential information, signing an NDA is a requirement," she explained. "If you refuse, you could lose a job offer or even your current position. There’s no law that forces you to sign, but there’s also no law that forces a company to keep you around if you don’t."

In recent years, NDAs have come under scrutiny and even been challenged in court. "They prevented many people who settled #MeToo claims from discussing their situations, which some argue suppressed necessary information that could bring impermissible behavior to light," notes Thompson Reuters.

"This situation has led to stricter scrutiny of non-disclosure agreements, making it all the more critical that they are drafted with great specificity and used judiciously."

In 2022, the U.S. Congress passed the Speak Out Act, which prohibits NDAs from blocking employees from discussing certain acts of misconduct in the workplace.

NDAs tend to act as a psychological tool to dissuade employees from speaking out and they are effective at achieving that goal, notes Integrity Online. But the legal documents don't always stop people from spilling the beans. If you're planning to do so, experts advise that you proceed with caution...

Speaking out after signing an NDA can lead to serious consequences, warns Chan. "Employees who break an NDA risk being sued for breach of contract. That can lead to financial penalties, legal fees, or even an injunction to stop further disclosure. Even if a company never files a lawsuit, the threat alone can be intimidating and costly to deal with," explains the expert.

"Even if a lawsuit doesn’t happen, a company might send a cease-and-desist letter or use other legal pressure to silence the employee. Breaking an NDA can also damage a person’s professional reputation and make it harder to find future work in the same industry."

Chan tells us that companies are more likely to take legal action if the leak involves damaging information, like exposing trade secrets or leaking financial or customer data. "But if the person is speaking out about bad leadership, a toxic work culture, or unfair treatment, many companies likely won’t retaliate," she says.

"For example, if you’re calling out a toxic manager or sharing your exit story on TikTok, a company might back off to avoid more negative press. Legal action is expensive and time-consuming, so many employers weigh the cost, the risk of bad press, and whether the leak truly harmed the business before taking that step."

"While NDAs are not typically binding when it comes to reporting criminal activity or information in the public interest, employees are nevertheless advised to consult a legal professional before speaking out," reads the Integrity site.

"This could take the form of a lawyer or legal firm specialized in whistleblowing who can thoroughly analyze and evaluate the NDA, as well as any aspects of the agreement that could prove problematic in court."

The experts at Integrity Online explain that in the event of obvious wrongdoing such as when a worker points out a serious health and safety violation to the relevant authority, it would constitute a good faith breach of an NDA, which would not result in repercussions.

"Alternatively, neglecting internal processes, bypassing the relevant authorities and blowing the whistle via the media in an attempt to slander the employer would be a bad faith breach of the NDA that could result in legal action," they warn.

Chan agrees that there are times when it’s okay to break the NDA and speak up. NDAs are meant to protect business secrets, not to cover up bad behavior, she says.

"They can’t legally stop someone from reporting illegal or dangerous behavior. If an employee wants to report harassment, discrimination, fraud, safety violations, or anything against the law, whistleblower protections apply," explained the expert. "That means you’re legally allowed to talk to law enforcement or government agencies, even if you signed an NDA. And if you're ever unsure about whether you’re crossing the line is, it’s smart to check with a lawyer first. A quick chat can help you speak up without putting yourself at risk."